We explore three reliable strategies for vetting your next tenant and successfully renting out your investment property.
Being a new landlord leaves you with multiple questions regarding tenancy and property management. Finding the right tenants for your rentals results in peace of mind and great value from the property. Most landlords find the process challenging, especially the new ones who lack experience. However, any landlord, whether new or seasoned, can effortlessly find the right tenants for their property is equipped with the right process and skills.
Today, we discuss the importance of vetting tenants. Dealing with squatters, or going through evictions, can be a landlord’s worst nightmare – both emotionally and financially. Consider these three reliable strategies to vetting your next tenant and successfully renting out your investment property.
A goal that most landlords share is a smooth and peaceful relationship with their tenants. To reach that, you should consider tenants with a great rental history. You should contact the tenants’ former landlords to confirm if they lived there. These tenants should also confirm the kinds of relationship they had with the tenants in the picture.
Based on the findings you get, you will choose the tenants that are easy to deal with and connect with. Be sure to consider tenants that pay their rent on time. If you get stuck with a tenant that doesn’t pay rent, they could turn into a squatter. That puts you in a difficult position as a property owner. That’s what happened to many investors throughout 2020. If you were one of those property owners that had wondered how can I sell my house with a squatter in it, you were likely disappointed with the answer.
The primary way to sell property with a tenant that is not paying rent would be to sell at a discount. That is not the news investors wanted to hear. Do your best to avoid those types of situations moving forward. One way is by following these tenant screening strategies.
Before selecting your next tenants, you should consider their credit history and report. Using tenant screening software can dramatically improve the speed of this process. Using a tool or software keeps everything organized, making the plethora of information easier for you to review. Without this, it’s easy to miss major details that can distinguish a good tenant from a bad one. What are certain items to look out for in a background and credit check?
For example, things like repossessions and bankruptcies can indicate financial instability. An incredible credit score and history do not always mean someone is a great renter. However, it remains a sign of a healthy financial state. Consider all the factors when analyzing a potential tenant. Renters with great financial well-being are less likely to struggle with the payment of rent and other bills.
Evictions are a leading red flag to look out for when vetting your next tenants. It is good practice to avoid most potential tenants with records of evictions from their previous landlords. There are two sides to each story, so it’s important to do your own due diligence when spotting an eviction on record.
If you are considering a tenant with an eviction on record, they may lead you into similar troubles if you decide to rent to them. Apply as many protective measures in your lease if you do decide to sign a lease together. Tenants with multiple evictions are, however, likely to be troublesome. Home experts advise against them at all costs.
Every landlord vetting their potential tenants looks forward to getting the best. If you are among them, you will likely save lots of time and effort by applying the above strategies. You should also look out for candidates with a stable income and avoid those with past criminal convictions.